Hwashin expected to return to profitability this year

Hwashin is expected to return to profitability in 2021 thanks to the recovery of the automobile market following pandemic-induced shutdowns last year, South Korean analysts say.

The company is expected to record 1.275 trillion won in sales and 46 billion won in operating income, according to the consensus of South Korean analysts.

Last year, the company had recorded 11.3 billion won in operating loss.

Hwashin supplies chassis and car body for use by Hyundai Motor and Kia, which accounts for 90% of its sales.

The company said car sales were reduced last year due to a drop in demand and factory shutdowns from COVID-19.

But automobile sales is returning and its sales and operating profit for the second half of 2021 was returning to normal levels, Hwashin said.

The company is also supplying components for electric vehicles such as Ioniq 5 and EV6 made by Hyundai Motor and Kia while it was also winning orders from Volkswagen for their MEB platform.

Hwashin was also developing carbon fiber reinforced plastic for use in electric and hydrogen vehicles, the firm said.

It is also collaborating with SK Telecom to apply AI-based acoustic emission solution to its production lines.

The solution measures seismic waves inside the components that are visible to the human eye to detect defects, an SK Telecom spokesperson said.